Telecom · bundled handset + service plan

Why this pattern exists

Handset price subsidized by carrier under bundled plan. ASC 606 transaction price allocates to handset (point-in-time at activation) and service (over-time over contract). Material change vs ASC 605.

Trigger conditions

Authoritative paragraphs

Every codification reference below is verified against the FASB Codification structure or Big-4 public guidance. No fabricated cites.

End-to-end behavior

1. 1Handset SSP allocation by relative-SSP method
2. 2Day-1 revenue catch-up at activation
3. 3Family plan multi-line allocation
4. 4ETF (early termination fee) handled as variable consideration

What auditors flag

Common mistakes preparers make on this pattern. The platform's confidence routing surfaces these for reviewer ratification before sign-off.